Swiss Bank Seba Launches Regulated Gold Token, Aims to Bolster ‘Digital Ownership of Physical Gold’ – Altcoins Bitcoin News
On December 15, FINMA-licensed Swiss bank, Seba, announced the launch of a gold token that can be delivered in physical form, on-demand, at any time from the firm’s partner refineries. Seba believes the token can be leveraged as a compliant stablecoin “backed by responsibly sourced gold.”
Swiss Bank Introduces ‘Seba Bank Gold Token’ Backed by Physical Gold Stored at Partner Refineries
Switzerland-based crypto bank Seba has introduced a number of new crypto products this year, like adding decentralized finance (defi) tokens to the company’s product lineup. In October, the Swiss bank revealed that customers can earn a yield on crypto holdings in an “institutional-grade” fashion. Seba’s gold token offer, which can trade for physical gold anytime of the day was announced on Wednesday by Seba.
“The Seba Bank Gold Token is a landmark development in investment products, enabling investors for the first time to own a digital form of physical gold via a fully regulated, cost-effective, and future-proof solution,” the Swiss bank’s announcement details.
Seba CEO Says Gold Plays a Major Role in the Capital Markets, Seba’s Gold Token Has Many Competitors
Seba reports that Seba worked with Argor Heraeus (a service provider for precious metals) in order to develop the PM platform. The blockchain-based PM platform was developed by Axedras, the Swiss bank’s announcement reveals.
“Seba Bank’s Gold Token can boost the adoption of precious metals by providing a cost-effective, secure and straightforward solution for investing in gold,” the company noted on Wednesday.
“Gold plays a major role in the capital markets. It has a market capitalization of more than USD 11 trillion and offers investors an inflation hedge as well as a safe store of value, regardless of economic turmoil. The gold standard was once the economic unit of account across the globe, forming the basis of our international monetary system,” Guido Buehler, CEO at SEBA Bank said in a statement.
Seba CEO:
We are continuing our history of allowing investors to have a digitally regulated form of gold. With the launch of the innovative Gold Token we’re building upon this experience to make it possible to offer an investor a completely regulated digital version of physical gold. Our gold token is physically redeemable from any refinery on-demand and offers investors a cost-effective way to own the asset.
Seba bank’s gold token is not the first to be built using blockchain technology. Tether Limited and Paxos also have gold tokens that are backed by an ounce.999 pure gold. Kitco, a PM industry giant launched an Ethereum-backed token that was gold-backed during the first week in August. Gold-backed tokens have fetched a premium in the past on a few occasions in comparison to gold’s spot market prices.
How do you feel about Seba Bank launching a token with a gold backing that can be exchanged for gold in physical form? Comment below and let us know how you feel about the subject.
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